for cnumber in `seq $CNUMBER`; do
declare -a CAT$cnumber
let i=0
while IFS=$'\n' read -r line_data; do
eval CAT$cnumber[i]='"${line_data}"'
((++i))
done < input_file_$cnumber
done
Mainly, that adds the word "eval" which makes bash evaluate the rest of the line. Before that, bash expands variables, thus CAT$number will be something like CAT1 when the line is evaluated. Keep in mind that "${line_date}" would be subject to variable expansion before eval evaluates the line if it would not be protected by single quotes. That might have unexpected effects if the $line_data would contain blank spaces. See this simplified example:
a=b
l="hello date"
eval $a="$l" # executes "date", has no other effect
echo $b # prints an empty line
eval $a='"$l"' # sets b to "hello date"
echo $b # prints that: hello date
In reply to the comment of Etan Reisner below, I add another solution that avoids "eval" and instead uses references, which are available in bash version 4.3 or higher. In that case, using references is preferable for the reason Etan pointed out, and also, for my opinion, because it is more natural:
for cnumber in `seq $CNUMBER`; do
declare -a CAT$cnumber # be sure the array is declared before ...
declare -n ref=CAT$cnumber # ... you declare ref to reference the array
let i=0
while IFS=$'\n' read -r line_data; do
ref[$i]="${line_data}"
((++i))
done < input_file_$cnumber
done
CAT${cnumber}